Core Viewpoint - The report from China Merchants Securities maintains a "strong buy" rating for Tencent Holdings (00700), highlighting the company's robust main business and impressive performance in its core gaming sector, along with significant improvements in various business lines due to AI empowerment [1][2]. Group 1: Business Performance - Tencent's core gaming business shows strong performance, contributing positively to overall revenue [1]. - The advertising sector has seen significant benefits from AI applications, enhancing efficiency and effectiveness [1]. - The company's e-commerce ecosystem is gradually improving with the upgrade of WeChat Mini Stores [1]. Group 2: AI Investments - Tencent is increasing its investment in AI, which is yielding tangible benefits across various sectors, including advertising and gaming [2]. - AI functionalities in WeChat have been enriched, providing intelligent search capabilities and automated customer service for merchants [1][2]. - In gaming, AI is enhancing content creation and player engagement in popular games like "Honor of Kings" and "Peacekeeper Elite" [1]. Group 3: Financial Outlook - The rising proportion of high-margin businesses is expected to support the improvement of the company's profit margins [1]. - Despite potential short-term cost increases due to AI investments, the existing high-quality revenue is anticipated to help maintain financial stability [2]. - The acceleration of application scenarios is expected to create additional growth opportunities for the company's performance [2].

Core Insights - The article emphasizes the evolution of artificial intelligence from a supportive tool to a new infrastructure driving industry growth, particularly in digital advertising, marking a transition from "computational advertising" to "intelligent advertising" [2] Event Overview - The 34th Asian Advertising Congress and the 32nd China International Advertising Festival will take place in Beijing, with Tencent participating to explore strategic foresight and practical decoding for the advertising industry [2] - Tencent's Vice President, Luan Na, will deliver a keynote speech on October 24, discussing Tencent's latest practices and strategic thoughts on AI-enabled brand management [4] - An AI Advertising Development Forum will be held on October 25, featuring discussions among academic experts, advertising platforms, agencies, and advertisers on industry opportunities and governance in the AI era [4] Report Release - A significant report titled "From 'One Size Fits All' to 'One Person, Many Faces': AI Leading the Intelligent Transformation of the Advertising Industry" will be exclusively released at the forum, outlining the landscape of AI-driven advertising innovation and predicting a collaborative era between humans and machines [4] Event Schedule - The event will include various sessions such as keynote speeches, AI advertising sharing, legal practices, and a roundtable discussion involving experts from different fields [5] Registration Information - The event is scheduled for October 24-25 at the Zhongguancun International Innovation Center in Haidian District, Beijing, with registration available through the official websites [7][8]

公司持续在AI领域加大投入并取得获益，1)微信方面，AI功能进一步丰富，赋能更多应用场景，如在内 容浏览中提供关键词智能检索，为微信小店商家提供智能客服回复，以及支持对视频号内容自动文字总 结等;2)游戏方面，AI赋能内容制作及虚拟队友等功能，加大《王者荣耀》《和平精英》等长青游戏内 应用，对吸引玩家的营销方案也有所赋能;3)广告方面，进一步加大AI在创作、投放、推荐及效果分析 中的应用，提升点击率和转化率及广告主回报。 目前公司AI能力已经对广告及长青游戏等业务产生了实质性的贡献，C端应用元宝DAU排名国内AI原生 应用Top3，9月28日混元发布并开源原生多模态生图模型"混元图像3.0"，并在LMArena发布的文生图榜 单中位居第一。随着公司进一步加大了对元宝应用与微信内AI等新AI机遇的投入，短期内对可能带来 成本上升，但该行认为公司现有高质量收入带来的经营杠杆将有助于消化相关影响，保持财务稳健，且 相关应用场景的落地有望加速，带来业绩增长增量空间。 智通财经APP获悉，招商证券发布研报称，维持腾讯控股(00700)"强烈推荐"投资评级。公司主营业务稳 健，核心游戏业务表现亮眼，AI赋能下广告等各业务 ...

Core Insights - The Chinese gaming industry is structured into three main segments: game development, publishing and operation, and distribution channels [2][3][7] - Guangdong province is the primary hub for gaming companies, followed by Beijing, Shanghai, Sichuan, Zhejiang, and Jiangsu [7][10] - Tencent and NetEase lead the gaming revenue among listed companies, with Tencent's revenue reaching 197.7 billion yuan and NetEase's at 105.3 billion yuan in 2024 [16][18] Industry Structure - The gaming lifecycle includes market research, game development, quality testing, publishing, user operation, and distribution [2] - Game development is divided into copyright holders and developers, with notable companies like Unity and Unreal Engine [3] - Major publishers include Tencent and other companies like Block Game and Thunder Game [3] Regional Distribution - The majority of gaming companies are concentrated in Guangdong, with 142 game licenses issued in the first half of 2025, followed by Shanghai (127), Beijing (98), and Zhejiang (67) [12][13] - Representative companies in Guangdong include Tencent, NetEase, and 37 Interactive Entertainment [10] Revenue Insights - Listed companies in the gaming sector show varied revenue, with Perfect World at 55.7 billion yuan and Kingsoft at 103.2 billion yuan [17][18] - 37 Interactive Entertainment reported a revenue of 174.41 billion yuan, while other companies like Giant Network and Yaoji Technology reported revenues of 29.23 billion yuan and 45.8 billion yuan respectively [18][19] Investment Trends - In 2023, Tencent acquired the casual game developer EasyBrain and invested in Ubisoft's IP subsidiaries [21] - NetEase established a Vancouver studio for cross-media IP projects, while 37 Interactive Entertainment invested in various tech companies to enhance its gaming capabilities [21] - Perfect World is exploring virtual reality through investments in VR game developers [21]

Core Insights - The topic "Is WeChat Moments cooling down?" has become a trending subject on social media as of October 16 [1] - A response article titled "Is no one really posting on Moments?" was published by the WeChat official account on October 15, addressing concerns about the usage of Moments [2] Group 1: User Engagement and Data - According to the WeChat public relations director, 780 million users access Moments daily, with 120 million users posting on it, indicating stable engagement over the years [4] - The director refuted claims that fewer people are posting on Moments, suggesting that such perceptions are subjective and akin to an "information cocoon" [4] Group 2: Product Features and Philosophy - The WeChat public relations director clarified that the Moments feed is sorted chronologically without an algorithm, emphasizing a straightforward approach to content visibility [4] - Regarding the absence of a visitor feature and secondary editing for Moments, the director stated that these decisions are made to avoid increasing social pressure on users [4] - The director also mentioned that Moments serves as a historical record of an individual's life, and thus, the introduction of a secondary editing feature is unlikely [4]

Market Overview - The Hong Kong stock market experienced fluctuations, with the Hang Seng Index closing at 23,831 points, down 145 points or 0.61% [1] - The market saw a significant rebound on Wednesday, with the Hang Seng Index rising 1.84% to 25,910.6 points, ending a seven-day decline [1] - The technology sector showed strong performance, with notable gains from JD Health and Huahong Semiconductor, both rising over 5% [1][3] US Market Insights - Bank of America reported strong earnings, boosting investor sentiment, leading to a 0.4% increase in the S&P 500 and a 0.7% rise in the Nasdaq Composite [2] - Ongoing US-China trade negotiations and government shutdown risks kept the market cautious, with the Dow Jones Industrial Average closing down 17 points at 46,253 points [2] - The VIX index, a measure of market volatility, rose to 20.6 points, nearing its highest level since late May [2] Investment Opportunities - The report emphasizes the potential for Hong Kong stocks to rebound due to low valuations and increasing trading activity [3] - Key sectors to watch include artificial intelligence, semiconductors, and industrial software, which are expected to drive long-term growth [3] - Central state-owned enterprises with low valuations and high dividends are highlighted as attractive investment options [3] - The upstream non-ferrous metals sector is expected to benefit from anticipated interest rate cuts by the Federal Reserve [3] Company Highlights - China Unicom (0762HK) is noted for its strong performance in digital technology, with a projected revenue of 45.4 billion yuan for its smart network business, reflecting a 4.3% year-on-year growth [10] - The company has a consistent dividend yield of over 6% and is positioned well within the digital economy landscape [10] - ZTE Corporation (00763HK) is expanding its focus on intelligent computing and 5G technology, maintaining a strong market position in both connectivity and computing solutions [9]

Core Viewpoint - The Hong Kong stock market is experiencing slight declines, but the technology sector remains a focal point for potential growth, driven by external capital inflows and favorable industry trends [1][2]. Group 1: Market Performance - On October 16, the Hong Kong stock market opened slightly lower, with the Hang Seng Index down 0.08% and the Hang Seng Tech Index down 0.14% [1]. - The Hong Kong Tech 30 ETF (513160) initially opened lower but fluctuated to gain 0.3%, with a premium of 0.04% [1]. - Over the past five trading days, the Tech 30 ETF has seen net inflows on four occasions, totaling over 180 million yuan [1]. Group 2: Sector Analysis - The Tech 30 ETF closely tracks the Hang Seng Hong Kong Stock Connect China Technology Index, which includes mainland companies listed in Hong Kong engaged in technology [1]. - Major holdings in the ETF include leading tech firms such as SMIC, Kuaishou, Tencent, Alibaba, and Xiaomi [1]. - According to Guotai Junan Securities, the technology sector is expected to benefit from current industry trends and potential foreign capital inflows, with expectations for new highs in the fourth quarter [1]. Group 3: Investment Outlook - Huachuang Securities maintains a positive outlook on the allocation value of internet heavyweight assets within the tech sector, highlighting the significant role of technology in the market [1]. - Tencent is noted for its strong fundamentals and the gradual realization of AI options, while Alibaba may face short-term profit pressures due to competition in instant retail but is viewed positively in the long term due to trends in cloud computing and AI [1]. - Dongwu Securities emphasizes that the global interest rate cut cycle and monetary easing provide room for stock market growth, particularly for leading tech firms in Hong Kong amid the accelerating AI industry in China [2].

Core Insights - The podcast from "WeChat派" discusses the decline in users posting on Moments and the handling of deceased users' accounts, indicating a shift in social media behavior and platform policies [1][3]. Group 1: User Engagement and Features - WeChat's public relations director stated that Moments will not introduce visitor features to avoid increasing social pressure on users [3]. - The platform is unlikely to implement a secondary editing function for Moments, as it serves as a historical record of a person's life, which should not be easily altered [3]. Group 2: Account Management Policies - Starting from September 2023, WeChat will no longer recycle accounts that have been inactive for a long time, addressing concerns raised by users about losing access to deceased relatives' accounts [3]. - In response to a viral incident in February 2023 regarding a deceased user's account disappearing, WeChat confirmed that inactive accounts without funds would be deactivated for security reasons [4]. Group 3: WeChat's Growth and Ecosystem - WeChat's ecosystem includes Moments, Official Accounts, Mini Programs, Video Accounts, and WeChat Shops, with significant growth in user engagement and transaction volume over the years [6]. - As of Q1 2025, WeChat and WeChat's combined monthly active users reached 1.402 billion, reflecting a year-on-year growth of 3% and a quarter-on-quarter growth of 1% [6].

Core Insights - The Chinese federated learning industry is experiencing steady growth driven by policy support, technological advancements, and market demand, with a projected market size of 254 million yuan in 2024, representing a year-on-year increase of 11.89% [1][8] - Federated learning effectively addresses the challenges of data silos and privacy security, enhancing model accuracy by over 20% in various applications such as financial risk control, medical joint diagnosis, and urban traffic optimization [1][8] Industry Overview - Federated learning (FL) is a distributed machine learning method aimed at enabling collaborative model training while protecting data privacy. It allows participants to train models locally using their own data and share encrypted model parameters with a central server, thus avoiding data sharing across institutions and complying with privacy regulations like GDPR [2] - The industry has evolved through four stages since the concept was introduced by Google in 2017: exploration, application, ecosystem building, and mature expansion [3] Market Size - The market size of the Chinese federated learning industry is expected to reach 254 million yuan in 2024, with a growth rate of 11.89% year-on-year [1][8] - The industry is supported by continuous iterations of technological frameworks, such as WeBank's FATE and Ant Group's shared intelligence platform, which incorporate privacy protection technologies like homomorphic encryption and secure multi-party computation [1][8] Key Companies - Leading companies in the federated learning sector include Ant Group and WeBank, with Ant Group holding a 36.7% market share in the privacy computing market for three consecutive years [8] - WeBank has pioneered the application of federated learning technology in the financial sector, with its open-source FATE framework becoming an industry benchmark [8] Industry Development Trends - The integration of federated learning with AI large models, edge computing, and 5G/6G technologies is expected to create a new paradigm of distributed AI collaboration [10] - Applications of federated learning are expanding beyond finance and healthcare into industrial internet, autonomous driving, and energy management, enhancing the technology's role in digital transformation [11][12] - The establishment of standards and the improvement of domestic policies are expected to strengthen the industry's foundation, with initiatives like the IEEE P3652.1 standard and the implementation of data security laws providing compliance support [13]

Group 1 - A total of 37 Hong Kong stocks conducted share buybacks on October 15, with 2 stocks exceeding HKD 10 million in buyback amounts [1] - The largest buyback amounts were recorded by Xiaomi Group-W (HKD 98.96 million), Sihuan Pharmaceutical (HKD 15.19 million), and Yun Gong Chang (HKD 8.01 million) [1] - Year-to-date, 240 Hong Kong stocks have conducted buybacks, with 53 stocks having cumulative buyback amounts exceeding HKD 100 million [1] Group 2 - The companies with the largest cumulative buyback amounts this year include Tencent Holdings (HKD 60.97 billion), HSBC Holdings (HKD 29.41 billion), and AIA Group (HKD 17.69 billion) [1]